Common use of Tobacco Surcharge Clause in Contracts

Tobacco Surcharge. If an employee hired on or after January 1, 2018 who participates in the City’s insurance program and uses tobacco, the employee will be charged a twenty-five dollar ($25.00) per month surcharge effective January 1, 2018. If an employee elects individual life insurance coverage only, the pre-existing monthly single employee life insurance premium rate to be charged to the employee shall be five dollars and fifty cents ($5.50). Such premiums shall be paid through an automatic payroll deduction. Providing a member continues monthly premium contributions as set forth in this section, insurance coverage for which the member is eligible will be extended ninety (90) days beyond the end of the month during which a member's approved leave without pay or leave of absence status became effective. If monthly premium contributions are not paid by the member, the member's insurance will then be terminated with an option to participate in the City's insurance continuation program, COBRA, at the member's expense. If any outstanding monthly premium contributions are not paid as specified herein, the City is authorized to pursue collection of monies due by either deducting the monies directly from the member’s regular paycheck, if any, or final paycheck from the City. The monthly premium for the City’s insurance continuation program, COBRA, shall be at the member’s expense.